Commodity Futures


Also found in: Dictionary, Wikipedia.

Commodity Futures Contract

An agreement to buy and sell a commodity at a certain date at a certain price. For example, Investor A may make a contract with Farmer B in which A agrees to buy a certain number of bushels of B's corn at $15 per bushel. This contract must be honored whether the price of corn goes to $1 or $100 per bushel. Commodity futures contracts can help reduce volatility in the normally volatile commodity markets, but contain the risks inherent to all speculative investing. These contracts may be sold on the secondary market, but the person holding the contract at its end must take delivery of the underlying. See also: Carrying charge, Options contract.

Commodity Futures

Contracts to buy or sell a fixed amount of a commodity (wheat or soy beans, for example) for a fixed price at a future date.
References in periodicals archive ?
The takeover is expected to be completed within fiscal 2011 ending March 2012 as trading on the two commodity futures exchanges has slackened due to tougher regulations on commodity futures.
The Japan's largest commodity futures exchange is planning to revise the gasoil contract so that a wider group of companies will be able to participate in the delivery process and enhance liquidity.
President Obama made Timothy Geithner, who worked for Clinton's Treasury Secretary Robert Rubin, his Treasury Secretary; made Larry Summers, who took over from Rubin, his Chief Economic Advisor; and Gary Gensler, who designed the Commodities Futures Act while working for Bill Clinton, Chair of the Commodity Futures Trade Commission.
The CFTC regulates commodity futures and option markets in the United States.
Three employees of the global fund Optiver Holding BV, including the companyCOs CEO and head of trading, manipulated crude oil, gasoline and heating oil futures on the New York Mercantile Exchange, the US Commodity Futures Trading Commission charged (CFTC).
The advent of the "new speculators" began to look to the commodity futures market (through derivatives) after the equity bear market of 2000-2002.
Categories: Financial Institutions, Commodities exchanges, Commodity futures, Commodity marketing, Commodity sales, Energy demand, Energy industry, Energy marketing, Federal regulations, Financial analysis, Financial futures, Financial institutions, Performance measures, Petroleum prices, Petroleum products, Prices and pricing, Regulatory agencies, Reporting requirements, Trade regulation
President Bush has nominated Bartholomew Chilton and Jill Sommers to serve as members of the Commodity Futures Trading Commission.
Although commodity futures are by definition margined transactions, commodity investors set aside the contract's full value when they buy.
Investment and speculative fund holdings of exchange-traded precious metals, as measured by the Commodity Futures Trading Commission, have grown significantly.
CBOT noted that it is awaiting certification on the new contract from the Commodity Futures Trading Commission.
The ANPR was developed jointly by the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Securities and Exchange Commission.

Full browser ?